Technical Note—Assortment Optimization with Small Consideration Sets

Autor:	Huseyin Topaloglu, Alice Paul, Jacob Feldman
Rok vydání:	2019
Předmět:	Mathematical optimization Linear programming Computer science Approximation algorithm Technical note Limit (mathematics) Management Science and Operations Research Purchasing Computer Science Applications
Zdroj:	Operations Research. 67:1283-1299
ISSN:	1526-5463 0030-364X
DOI:	10.1287/opre.2018.1803
Popis:	In the paper “Assortment Optimization with Consideration Sets,” we study a customer choice model that captures purchasing behavior when there is a limit on the number of times that a customer will consider purchasing. Under this model, we assume each customer is characterized by a ranked preference list of products and, upon arrival, will purchase the highest ranking offered product. Because we restrict ourselves to settings in which customers consider a limited number of products, we assume that these rankings contain at most k products. We call this model the k-product nonparametric choice model. We focus on the assortment-optimization problem under this choice model. In this problem, the retailer wants to find the revenue-maximizing set of products to offer when the buying process of each customer is governed by the k-product nonparametric choice model. We develop a linear programming–based randomized rounding algorithm that gives the best known approximation guarantee.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::e34413c9e5baeeee055c8120c045d366 https://doi.org/10.1287/opre.2018.1803 Zobrazit plný text záznamu Plný text ve formátu PDF